i used to, but am now using an apple tv instead of airport express. i tried just for kicks using eq on itunes, only to find it made things worse rather than better. i don't recommend it at all.
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I do just that....and while it is fine....I simply leave all the 'settings' off.
Also, the output jitter of the AE is awful. Some DACs simply will not reliably lock on that signal. If you get a screeching or fingers on chalk board noise, that's it.
Record in ALAC or other lossless format. MP3? Ok, for background use and in the car. All my files are in both formats and their own playlists.
Yes, I've been using an Airport Express for streaming for a few years, both the original 811g and now the 811n models. I leave the EQ off completely and the electronic volume control all the way up.
I had a few problems with the earlier 811g getting interference from a 2.4 Ghz cordless phone and a microwave but solved that by switching channels within the AE. The 811n has never had any problem with interference.
I've used three different DAC's with them and never had a problem with signal locking.
I use a glass Toslink cable and mostly Apple Lossless files plus some high bit rate mp3 files. The setup sounds great and is very easy to use.
I have same AE-Toslink-Benchmark DAC1.
Magfan - According to Stereophile measurements AE has respectable 250ps jitter. Analog outputs is another story with performance less than perfect.
Sfar - I had also interference problem before I found what channel my microwave is on (read microwave spects). I'd like to switch to 802.11n but my MacMini dosn't support it. From time to time (once every few days) I have short dropout but it doesn't bother me since it is short drop (fraction of a second)and not a click or pop.
Mjmch2003 - AFAIK AE uses ALAC format for transfer therefore I store data on the server in ALAC (one conversion less). PC is a different story since FLAC is more popular. Any type of storage is OK since HDs are cheap. My external 1TB Firewire drives were $99 each (one in usage and two backups).